JBaker wrote:Hello everyone, how many of you give credit cars to your kids? I have heard varied views about this, some supporting and others disagreeing. [color="red"]My kids aren't old enough to handle credit cards[/color], but I would like to know what the parents of teens are actually doing. I think there are both pros and cons in giving credit cards to kids.
So please share in your views about this.
Guess it depends on the age of the kiddos and their maturity level. Some kids are much more responsible at a young age, versus older kids who still need to learn responsibility.
If they are, say, mid- to late-teens, and you're looking to instill credit values with them, you could always add them as authorized users on your card(s), but not actually give them the physical cards until you feel they are ready for them. This also involves parental discussions on credit, using it wisely, educating kiddos as to the pros and cons of using credit cards, etc. When you feel they are ready, then you could give them the physical cards. This also helps them to establish a credit history on their own, as your credit history will have an impact on their beginning credit file.
Interesting dynamic of giving kiddos that first opportunity at using credit cards. I put both my kids on a few of my credit cards as AU, neither of them ever abused that. When they did use the cards, they told me about it, or if they had an upcoming expense that I knew about, I would suggest they put it on the card and then pay me back. My daughter (the younger of the two) has her own accounts now and manages credit just fine. My son, on the other hand, wants nothing to do with credit cards, but still manages his money quite well. His decision, though I keep pointing out the benefits to having a stronger credit file.